New owner for Commonwealth LNG project

Energy investor Kimmeridge now has a majority ownership stake in the proposed Commonwealth LNG project, after buying out Commonwealth founder Paul Varello’s share, according to information posted in Bloomberg.

During the third annual State of the Southwest breakfast held Thursday, Cameron Port Director Kim Montie gave an update on port properties — including improvements, operating and growing LNG export facilities, and LNG facilities that would start construction as soon as there is a change in administration, regardless of who is elected, she said.

During her presentation, she announced that Tellurian and Commonwealth have new owners.

Commonwealth LNG was last in the news mid-July when the U.S. Court of Appeals, DC District, agreed that the Federal Regulatory Commission failed to fully and adequately assess the cumulative and direct environmental and health impacts that would be caused by the export terminal scheduled to be built on 400 acres on the west bank of the Calcasieu Ship Channel in Cameron Parish near the Gulf.

The decision does not vacate FERC’s approval in 2022, but returns the decision to FERC for reconsideration. It is reasonably likely that, on remand, the Commission can redress the defects in its report and still authorize the project, said Lyle Hanna, Commonwealth LNG VP.

If constructed, the liquefaction and export project is set to export 0.5 million tons per year.

It was announced in July that Tellurian Driftwood would be acquired by Woodside, Australia’s biggest oil and gas producer,  or about $900 million. Woodside is targeting a final investment decision for the first phase of the Carlyss Driftwood project in the first quarter 2025.